NPVs, IRRs, and MIRRs for Independent Projects

Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck is $17,100, and that for the pulley system is $22,430. The firm's cost of capital is 14%. After-tax cash flows, including depreciation, are as follows:

Year = 1 Truck = $5,100 Pulley = $7,500

year=2 truck = 5,100 Pulley= 7,500

year =3 truck = 5,100 pulley= 7,500

year= 4 truck= 5,100 pulley= 7,500

year= 5 truck= 5,100 pulley= 7,500

Calculate the IRR, the NPV, and the MIRR for each project, and indicate the correct accept/reject decision for each. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places. Use a minus sign to enter negative values, if any.

Truck IRR value --------------% Pulley IRR value------------%

NPV----------------- $ NPV----------------- $

MIRR-------------- % MIRR-----------------%